[Code of Federal Regulations]
[Title 41, Volume 3]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR105-55.005]

[Page 269]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
              CHAPTER 105--GENERAL SERVICES ADMINISTRATION
 
PART 105-55--COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents
 
Sec. 105-55.005  Interest, administrative charges, and penalty charges.

    (a) GSA shall assess interest on unpaid claims at the rate of the 
current value of funds to the Treasury as prescribed by the Secretary of 
the Treasury on the date interest begins to run. GSA shall assess 
administrative charges to cover the costs of processing and handling 
overdue claims. GSA shall assess penalty charges of six percent a year 
on any part of a debt more than 90 days past due. The imposition of 
interest, administrative charges, and penalty charges are made in 
accordance with 31 U.S.C. 3717.
    (b) Interest will be computed from the date of mailing or hand 
delivery of the initial demand if the amount of the claim is not paid 
within 30 days. The 30-day period may be extended in individual cases if 
there is good cause to do so and it is in the public interest. Interest 
will only be computed on the principal of the claim and the interest 
rate will remain fixed for the duration of the indebtedness, except 
where a debtor has defaulted on a repayment agreement and seeks to enter 
into a new agreement. A new rate which reflects the current value of 
funds to the Treasury at the time the new agreement is executed may be 
set if applicable and interest on interest and related charges may be 
charged where the debtor has defaulted on a previous repayment 
agreement. Charges which accrued but were not collected under the 
defaulted agreement shall be added to the principal to be paid under the 
new repayment schedule.
    (c) GSA may waive interest, administrative charges, or penalty 
charges if it finds that:
    (1) The debtor is unable to pay any significant sum toward the claim 
within a reasonable period of time;
    (2) Collection of interest, administrative charges, or penalty 
charges will jeopardize collection of the principal of the claim; or
    (3) It is otherwise in the best interests of the United States, 
including the situation where an offset or installment payment agreement 
is in effect.